What is the Kisan Vikas Patra (KVP) Scheme?

KVP is a government-backed savings scheme that doubles your investment within a specified time, offering guaranteed returns and low risk.

Who is eligible to invest in KVP?

Any Indian resident aged 18 and above can invest in KVP. Parents or guardians can also invest on behalf of minors or individuals with unsound minds.

What is the minimum and maximum investment for KVP?

The minimum investment is ₹1,000, with no maximum limit. Investments must be in multiples of ₹1,000.

Can I withdraw money from KVP before maturity?

Premature withdrawal is allowed after the lock-in period of 2.5 years or under specific circumstances like the account holder’s demise or court orders.

What documents are required to apply for KVP?

You need to provide Form A (and Form A1 if using an agent), identity proof (e.g., Aadhaar, PAN card), and KYC documents.

Who is eligible to invest in KVP?

Any Indian resident aged 18 and above can invest in KVP. Parents or guardians can also invest on behalf of minors or individuals with unsound minds.

What is the minimum and maximum investment for KVP?

The minimum investment is ₹1,000, with no maximum limit. Investments must be in multiples of ₹1,000.

Can I withdraw money from KVP before maturity?

Premature withdrawal is allowed after the lock-in period of 2.5 years or under specific circumstances like the account holder’s demise or court orders.

What documents are required to apply for KVP?

You need to provide Form A (and Form A1 if using an agent), identity proof (e.g., Aadhaar, PAN card), and KYC documents.

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Kisan Vikas Patra Scheme: Application, Eligibility, Benefits

Jaagruk Bharat

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Updated: 14-11-2024 at 3:30 PM

Kisan Vikas Patra Scheme: Application, Eligibility, Benefits

The Kisan Vikas Patra (KVP) Scheme is a reliable savings scheme by the Government of farmers. With a guaranteed return that doubles the investment within a fixed period, KVP is a popular choice for risk-averse investors. Here’s a detailed look at the government scheme, its features, eligibility, and the application process.

Section	Details
Minimum Investment	1000 Rupees
Maturity Period	Approx 10 years (subject to interest rate)
Rate of Return	Updated quarterly by the government
Premature Withdrawal	Allowed under specific conditions
Lock-in Period	2.5 years

What is the Kisan Vikas Patra Scheme?

The ‘Kisan Vikas Patra (KVP)’ is a certificate savings scheme that was launched by the Government of India on 1st April 1988. The govt scheme provided a facility of unlimited investment by way of the purchase of certificates from post offices in various denominations. The maturity period of the scheme when launched was 5 ½ years and the money invested doubled on maturity.

The Kisan Vikas Patra, a very popular savings instrument with the prime objective of stimulating long-term investments among the masses, especially in rural areas. Denominations available are the smallest and begin with a modest amount that permits people to have secure investments with low risk. The compelling feature of the scheme is the amount invested in it gets doubled up by the time maturity is reached. Thus, this comes up as an alternate, sound source of returns. The government periodically has revised KVP in terms of interest rates and maturity time with time to follow the economic times so that it would hold significance and attractiveness for investors in the market.

However, the scheme ‘Kisan Vikas Patra’ was relaunched in the year 2014 by the Department of Economic Affairs, Ministry Of Finance, Government of India given the popular demand and to revitalise Small Savings. The amount invested in Kisan Vikas Patra (KYP) doubles in 115 months at the present rate. The certificates can be purchased by an adult for himself/herself on behalf of a minor or for a minor. It can also be purchased jointly by two adults.

Who Should Invest in the KVP Scheme?

KVP is ideal for individuals seeking guaranteed returns without market risks. It is especially suitable for conservative investors, individuals with long-term financial goals, and those looking to diversify with low-risk savings.

Features

The Kisan Vikas Patra (KVP) is a dependable savings option designed to offer safe and assured returns, particularly for those seeking stability over high risk. It allows investors to double their funds within a predetermined period, offering a balance between security and growth.

Ensures your investment doubles in a specific period.
KVP is immune to market volatility.
Available at post offices and select banks.
Investments can be made in multiples of ₹1000.
Permissible after 2.5 years under certain circumstances.

Benefits

The Kisan Vikas Patra (KVP) scheme is a government-backed savings plan that offers guaranteed returns, making it an attractive option for individuals seeking a secure investment avenue. Regardless of market conditions, the KVP provides a stable, assured corpus upon maturity, encouraging regular savings and wealth accumulation.

Irrespective of market fluctuations, individuals who have put their money into this scheme would generate a guaranteed sum. The said feature encourages saving more.
The interest rate of the KVP Scheme tends to vary, and such variations depend on the year an individual invested in it. The rate of interest for the financial year 2024-2025 is 7.5%. The interest accrued on the invested sum is compounded yearly, ensuring more returns to individuals.
The time horizon of the Kisan Vikas Patra scheme is 113 months. After completing the said period, the government scheme matures and extends a corpus to a KVP scheme holder. In case, individuals decide to withdraw the proceeds generated later than the maturity period; the amount would accrue interest until it is withdrawn.
Individuals can deposit money into this scheme with as little as Rs. 1,000 and invest as much as they want to. However, the amount has to be a multiple of Rs. 1,000 and a sum over Rs. 50,000 would require PAN details and would be extended by a city’s head post office.
An amount that is withdrawn post maturity is exempted from Tax Deducted at Source or TDS. However, the KVP scheme is not entitled to any tax deductions mentioned under Section 80C.
Individuals can select a nominee in this scheme. All they would need to do is fill up a nomination form, offer the required details of their choice of nominees and submit it. Also, Individuals can even select a minor as their nominee.

Types Of Kisan Vikas Patra Scheme Accounts

The Kisan Vikas Patra scheme offers three types of certificate accounts to cater to different needs and preferences of investors. Each account type allows for specific holder arrangements, making it accessible for individuals, minors, and groups alike.

Single Holder Type Account: This type of account may be opened by an adult for himself, on behalf of a minor or a person of unsound mind of whom he is the guardian, or by a minor who has attained the age of ten years.
Joint A- Type Account: This type of account may be opened jointly in the names of up to three adults payable to all the account holders or the survivors.
Joint B-Type Account: This type of account may be opened jointly in the name of up to three adults payable to any of the account holders or the survivor or survivors.

Eligibility Criteria

The Kisan Vikas Patra scheme is open to a wide range of eligible individuals, making it an accessible investment option for both adults and minors. This inclusivity enables parents or guardians to invest on behalf of those who cannot independently manage their finances, such as minors or individuals with specific needs.

Any individual who is a resident of India can avail of the benefits under the govt scheme.
A parent/guardian may invest on behalf of a minor or person of unsound mind.
The minimum age of minors should be 10 years.

Deposits

The Kisan Vikas Patra scheme offers flexible deposit options, allowing individuals to invest according to their financial capability. This flexibility in deposits and the ability to open multiple accounts makes KVP a convenient choice for both small and large investors.

A minimum of ₹1000/- and any sum in multiples of ₹100/-, may be deposited in an account.
There shall be no maximum limit for deposits in an account or accounts held by an account holder.
An individual may open any number of accounts.

Payment on maturity:

The maturity period of an account opened between 12th December 2019 to 31st March 2020 (both days inclusive) shall be 9 years and five months. Deposit made in the account shall double on maturity and the amount of maturity may be repaid to the account holder.
The maturity period of an account opened on or after the first day of April 2020 shall be 10 years and four months. Deposit made in the account shall double on maturity.
The maturity period of the deposit under this govt Scheme shall be determined by the rate of interest applicable at the time of opening the account.

Application Process

Online Application Process

To conveniently invest in Kisan Vikas Patra (KVP), individuals can follow a few simple steps to apply online through authorized banks or post offices. This online application process makes it easier to invest from the comfort of your home, ensuring a hassle-free experience.

Step 1: Visit the India Post website. Alternatively, log in to your internet banking.

Step 2: Select Kisan Vikas Patra (KVP) and download the KVP Form A.

Step 3: Fill out the form with your personal details, the investment amount, mode of payment and select the type of certificate. Also, fill in the nomination and submit it to the bank/post office with the documents required for KYC.

Step 4: On document verification, make the deposit either in cash, pay order, locally executed cheque, or demand draft drawn in the name of the postmaster.

Step 5: You will receive a KVP certificate immediately unless you pay by cheque/pay order/demand draft. You can request the executives to send you the certificate over your email address.

Offline Application Process

Following is the process to invest in the Kisan Vikas Patra offline-

Step 1: Visit the post office and obtain the KVP application form i.e. Form-A, from the post office.

Step 2: Provide the relevant details on the form and submit.

Step 3: If the investment is being with the assistance of an agent, Form-A1 will need to be filled out and submitted.

Step 4: Provide a copy of any one of the identity proofs for the KYC procedure.

The KVP Certificate will be issued after the documents are verified and the required deposits are completed. KVP Certificates can also be received via email on the registered email ID.

Documents required

Eligible individuals can avail of the scheme Kisan Vikas Patra in 2024 by offering the required documents. Here is a list of documents that are deemed necessary for the same –

Form A must be duly submitted to an India Post Office branch or other specific banks.
Form A1, if the application is extended through an agent.
KYC documents like an Aadhaar Card, PAN card, Passport, Voter’s ID, Driving License, etc. serve as ID proof.

On providing these documents mentioned above, applicants would be offered a KVP certificate. In the event of loss or damage of Indira Vikas Patra or Kisan Vikas Patra certification, individuals can apply for a copy of the same. Such an application can be made through the institution where the certification was availed in the first instance.

Premature Withdrawal From KVP

As per the Kisan Vikas Patra withdrawal rules, even though the account matures after 113months, the lock-in period for this government scheme is set to 30 months i.e. 2 years and six months. One cannot encash from the scheme early unless and until due to the account holder’s demise or a court order.

Nomination In Kisan Vikas Patra

Certificate holders, whether single or joint, can make a nomination by filling out Form C at the time of purchase. You may nominate anyone so that the nominee will be eligible for the certificate’s benefits in the case of the death of the sole holder or both joint holders.

If the nomination is not made at the time of purchase, the single holder, joint holder, or surviving joint holder can make a nomination at any time after the certificate is purchased but before it matures by completing the duly completed Form C. Submit it to the postal or bank person who registered the certificate.

Nominations may be made, however, if the certificate is applied for and held by or on behalf of a minor. If the holder or holders of the certificate make a nomination in this situation, the nomination will be cancelled or revised using Form D.

Encashment of Kisan Vikas Patra

To encash a Kisan Vikas Patra Certificate, it can be availed at the same Post office where the KVP was provided. If you need to encash KVP at another post office, certain formalities will be required to be done.

To encash a KVP, submit the identity slip that was given at the time of issue of the KVP certificate. For encashing a KVP certificate, provide a letter in writing to the concerned post office along with the identity slip.

If you want to pull out the principal before the maturity time, note that it can be done only after 2 years and 6 months.

KVP can also be prematurely encashed before its maturity but only under the below-mentioned circumstances-

On forfeiture by a pledge or by a Gazetted Officer.
Upon the death of the Kisan Vikas Patra holder/any of the holders if there are joint KVPs.
If ordered by a Court of law.

How To Transfer Kisan Vikas Patra Account

For transferring the Kisan Vikas Patra certificate from one person to another or one Post Office to another, follow the below-mentioned ways-

Transfer from One Person to Another

To transfer the KVP certificate from one person to another, a written letter is required to be submitted to the Post Office. The following circumstances would apply for the same-

From one owner to the combined owners
From combined owners to the name of one of the owners
Transfer from the name of the deceased to his or her heir
From the owner to a judge of law and also to other individuals as ordered by a Law Court

Transfer from One Post Office to Another

The KVP certificate can be transferred from one post office, from where it was originally received, to another post office.

To transfer a Kisan Vikas Patra certificate, the individual must submit a handwritten consent to the officer at the post office in question. Note that the transferee must be a resident Indian and must hold the eligibility to purchase the Kisan Vikas Patra certificates.

Conclusion

The Kisan Vikas Patra (KVP) Scheme is a time-tested investment choice for individuals seeking guaranteed returns without risk exposure. With its attractive features and straightforward application process, KVP continues to be a preferred savings option in India

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